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What Went Wrong? End of communism Great liberation from oppression New leaders include many free market folk Vaclav Klaus, Miseans in the Baltics, Poland, etc. Soros, others, eager to help It is easy to turn an aquarium into fish soup, but not so easy to turn fish soup back into an aquarium. –Lech Walesa

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Bits Without Borders Can now purchase e-goods & e-services from across the world as easily as next door. Escape old limits of geography & jurisdiction. Can trust-hubs escape too? Can they be made purely electronic? Mostly independent of physical interaction Many 1 st world hubs are trusted worldwide

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Contracts as Games Players make moves, but only legal ones Move changes state of board Board-state determines move legality ERights are pieces placed on board Game escrows pieces, Pieces/ERights released only by play

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The Game Design Game Contract Negotiation as Game Design Framework as the Game of Game Design Design rules for game all are willing to play Write board manager for that game Agree on a mutually trusted host Pay host to run the board manager Host verifies everyone agreed on same game

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Why the 3 rd World First? Less burden of installed base Like cell-phones in Eastern Europe. Where legal system isnt thought legitimate, legitimate businesses need not be legal. Especially given alternate source of legitimacy.

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Rule of Law & Not of Men The Classical Liberal ideal A neutral simple framework of rules enforced impartially & justly enabling cooperation without vulnerability The old right of contract Any mutually acceptable arrangement Law secures it, as a trusted intermediary